The New Jersey Association of Health Underwriters, representing health insurance brokers statewide, believes state lawmakers should not raid the reserves of Horizon Blue Cross Blue Shield as part of efforts to plug the proposed fiscal 2018 state budget.
Horizon, as the state’s largest health insurer serving more than 900,000 Medicaid members, helps New Jersey’s most vulnerable and financially challenged residents. Taking money from families that Horizon insures, including people who rely on Medicaid, will only make insurance more expensive and less secure in New Jersey
The claim that Horizon and its policyholders have an “abundant surplus” is just plain wrong. It is our firm understanding that those reserves have only enough to cover 75 days of claims or just a single day of hospital care for every person Horizon insures.
Moreover, the company’s net income was less than 1 percent of revenues in 2016. Despite being structured as a not-for-profit, Horizon paid more than half a billion dollars in federal, state and local taxes last year.
While other insurance companies have left, Horizon has stayed in the Affordable Care Act marketplace, demonstrating its ongoing commitment to New Jersey.
Desmond X. Slattery, Legislative Chair, New Jersey Association of Health Underwriters